id stringlengths 3 7 | question stringlengths 28 4.78k | answer stringlengths 1 740 | answer_type stringclasses 11
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2001693 | Fancy Footwear has a line of credit with a local bank in the amount of $80,000. The loan agreement calls for the interest of 7% with a compensating balance of 5%, which is based on the total amount borrowed. The compensating balance will be deposited into an interest-free account. What is the effective interest rate on... | A | Multiple Choice | Finance | University |
1244219 | Odor Eaters Corp. bonds are currently priced at $953.77. They have a $1,000 par value and 6 years until maturity. They pay an annual coupon of 7%. Compute the yield to maturity for the bonds. | 7.97% | Percentage | Finance | University |
1908071 | The backwoods lumber co. has a debt-equity ratio of .80. The firm's required return on assets is 12% and its cost of equity is 15.68% what is the pre-tax cost of debt based on M&M II with no taxes?
a. 6.76%
b. 7.00%
c. 7.25%
d. 7.40%
e. 7.50% | D | Multiple Choice | Finance | University |
2015455 | A company's zeros have a face value of $1,000 and mature in 18 years. They currently sell for $80.81 today. By what percentage will the market price change if the market's required return falls by half? | 236.66% | Percentage | Finance | University |
10755 | A Japanese company has a bond outstanding that sells for 96 percent of its 100,000 yen par value. The bond has a coupon rate of 6.3 percent paid annually and matures in 19 years. What is the yield to maturity of this bond? | 6.64% | Percentage | Finance | University |
226641 | Calculate the monthly payment of a $30,000 loan at a 12% nominal interest rate over 5 years, if compounded semiannually. | $662.98 | Float | Finance | University |
1338760 | Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011.
Reported
Horizon Period
(in millions)
2011
2012
2013
2014
2015
Terminal period
Sales ($... | 64.32 | Float | Finance | University |
427328 | Seether, Inc., wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of 0.4. Profit margin is 6.7 percent, and the ratio of total assets to sales is constant at 1.64. What dividend payout ratio is necessary to achieve this growth rate under these constraints?
(Negative answer should be indica... | -145% | Percentage | Finance | University |
2090313 | Heginbotham Corp. issued 10-year bonds two years ago at a coupon rate of 8.4%. The bonds make semiannual payments. If these bonds currently sell for 105% of par value, what is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) | 7.56% | Percentage | Finance | University |
861306 | $20,000 is deposited in an account that earns 6% per year compounded yearly. The money accumulates in the account until the end of year 6 at which time a $10,000 withdrawal is made. The remainder stays in the same account for another 5 years at which time a second withdrawal is made of $5,000. The remainder stays in th... | $23,324.51 | Float | Finance | Senior High School |
538051 | How much would $250,000 due in 50 years be worth today if the discount rate was 6.75%? | $9,539.54 | Float | Finance | Senior High School |
431394 | You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate on the loan is 9% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you c... | 35.56 months | Float | Finance | University |
52248 | Bui Corp. pays a constant $13.50 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price? | 69.47 | Float | Finance | University |
509646 | Did Goldman Sachs survive the 2008 financial crisis because it had better risk management than the other Wall Street banks which were killed? | Yes | Boolean | Finance | Senior High School |
565661 | Project Y costs $1,000, and its Chas flows are the same in years 1 through 10. Its IRR is 12%, and its WACC is 10%. What is the projects modified internal rate of return MIRR?
a. 11.93%
b. 9.11%
c. 9.93%
d. 10.05%
e. 10.99% | e | Multiple Choice | Finance | University |
1039807 | A bond sells for $965.25 and has a coupon rate of 7.50 per cent. If the bond has 26 years until maturity, what is the yield to maturity of the bond? | 7.82% | Percentage | Finance | University |
1328674 | Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.35 per share at the end of 2013. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 5.5% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growt... | $45.71 | Float | Finance | University |
1102492 | Titusville Petroleum Company is considering pledging its receivables to finance an increase in working capital. Citizens National Bank will lend the company 80 percent of the pledged receivables at 2 percentage points above the prime rate (currently 10 percent). The bank charges a service fee equal to 1.5 percent of th... | 27.2% | Percentage | Finance | University |
1808724 | The First National Bank has agree to lend you $30,000 today, but you must repay $42,135 in three years.
What rate is the bank charging you? | 12% | Percentage | Finance | Senior High School |
1803026 | A business is considering the purchase of a new machine that would increase speed and save money. The net cost is $60,000. The cash flows have the following projections.
Year Cash Flow
1. 27,000
2. 28,000
3. 31,000
4. 19,000
5. 12,000
Calculate the internal rate of return? | 31.27% | Percentage | Finance | University |
1587464 | Dogs 4 U Corporation has net cash flow from financing activities for the last year of $36 million. The company paid $182 million in dividends last year. During the year, the change in notes payable on the balance sheet was $41 million and change in common and preferred stock was $0. The end-of-year balance for long-ter... | $112 million | Integer | Finance | University |
781432 | IRR Project K costs $48,089.11. Its expected cash inflows are $11,000 per year for 8 years, and its WACC is 12%. What is the project's IRR? | 15.8% | Percentage | Finance | University |
1295075 | What is the future value of the 10% savings from earnings of $187.45 if it earns 5% annual interest, compounded monthly for 30 years? | 83.75 | Float | Finance | Senior High School |
1552349 | A project has an initial cost of $43,425, expected net cash inflows of $10,000 per year for 6 years, and a cost of capital of 9%. What is the project's MIRR? Round your answer to two decimal places. | 9.59% | Percentage | Finance | University |
1686856 | Cindy wants to deposit money for 4 consecutive years starting 3 years from now, with the goal to withdraw $50,000 twelve years from now. Assume the interest rate is 8% per year. What will the annual deposit is closest to?
a) $6,990
b) $7,670
c) $8,530
d) $10,490 | a | Multiple Choice | Finance | University |
305956 | Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows.
The return for Drucker in the following three economic states of nature are forecasted to be:
-18% in recession,
+9% in moderate growth, and
+35% in a boom.
... | 1.61 | Float | Finance | University |
1935687 | Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 6 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $94 per share. What is the proje... | 3.86 | Float | Finance | University |
1163919 | An Iowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption. | $63.02 | Float | Finance | Senior High School |
1642463 | A proposed project requires an initial cash outlay of $749,000 for equipment and an additional cash outlay of $48,500 in year one to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 16 percent? | -105397.05 | Float | Finance | University |
2028095 | Which of the following statements is correct?
A) A sinking fund provision makes a bond more risky to investors at the time of issuance.
B) Sinking fund provisions never require companies to retire their debt; they only establish "targets" for the company to reduce its debt over time.
C) If interest rates increase af... | E | Multiple Choice | Finance | University |
261642 | Calculate the cost of unlevered equity if the cost of equity is 20%, the cost of debt is 7%, and the capital is 50% equity and 50% debt. | 13.5% | Percentage | Finance | University |
2013342 | Sunset Press has just purchased a new trimming machine that cost $14,125. The machine is expected to save $2,500 per year in cash operating costs and to have a 10-year life.
Compute the machine's internal rate of return. Explain and show calculations. | 12% | Percentage | Finance | University |
1068868 | Suppose the amount Harry needs for a down payment at the end of five years is $10,000. He wants to invest equal amounts at the end of each year for the next five years to accumulate the $10,000 he needs. His investment will earn 8% interest.
How much would his investment be worth at the end of each year for the five-y... | $1,704.56 | Float | Finance | Senior High School |
476611 | You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $63.88 per share. You will also receive a dividend of $4.94 per share at the end of the next year.
If your required return on this stock is 12.18%, what is the most you would be willing to pa... | 61.35 | Float | Finance | University |
736515 | A {eq}\$100,000 {/eq} face value T-bill matures in 71 days and has a Bond Equivalent Yield (BEY) of {eq}5.47\% {/eq}. What is the current value (price) of the bond? | $98,941.33 | Float | Finance | University |
848912 | You need $70,000 in today's buying power 6 years from now. You can earn 2% APR in real terms on your investments. How much do you have to invest, in nominal terms (the same amount each year), starting next year for 5 years, to just meet your needs, if you expect inflation to be 4% per year?
{eq}\bigcirc
{/eq} $8,018
... | C | Multiple Choice | Finance | University |
380802 | Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments, $50 at the end of each of the next 3 Years, plus a payment of $1,050 at the end of Year 4.
Your friend says she can get you some of these securi... | $893.26 | Float | Finance | University |
604785 | You have just received notification that you have won the $3.0 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 72 years from now. What is the present value of your windfall if the appropriate discount rate is 9%?
- $22,770.12... | $6,059.17 | Float | Finance | University |
372178 | Current forecasts are for XYZ Company to pay dividends of $3, $3.24, and $3.50 over the next three years, respectively. At the end of three years you anticipate selling your stock at a market price of $94.48. What is the price of the stock given a 12% expected return? | 75.00 | Float | Finance | University |
793436 | The risk-free rate of return is currently 0.05, whereas the market risk premium is 0.07. If the beta of RKP, Inc., stock is 1.8, then what is the expected return on RKP? | 0.08 | Float | Finance | Senior High School |
1473490 | Sally will invest $8,000 per year in a fund that will earn 9% interest, compounded annually. If the first payment occurs one year from today, what will be the balance in the fund 20 years from now? | 409280.96 | Float | Finance | Senior High School |
1937535 | Faisal has $15,000 in his savings account and can save an additional $3,800 per year. If interest rates are 10%, how long will it take his savings to grow to $45,000? | 4.7 years | Float | Finance | Senior High School |
914982 | The Matchless Dating Service has made an investment in video and recording equipment that costs $106,700. The equipment is expected to generate cash inflows of $20,000 per year.
How many years will the equipment have to be used to provide the company with a 10% rate of return on its investment? | 8 years | Integer | Finance | University |
1558485 | Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. ... | A | Multiple Choice | Finance | University |
612519 | You are scheduled to receive annual payments of $8,800 for each of the next 27 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year? | $7,694.72 | Float | Finance | University |
727593 | The present value of the following cash flow stream is $8,200 when discounted at 8.6 percent annually. What is the value of the missing cash flow?
Year Cash Flow
1 $1,800
2 ?
3$2,400
4$3,000 | $2,963 | Float | Finance | University |
437738 | If a firm's expected growth rate increased then its required rate of return would:
A) decrease.
B) fluctuate less than before.
C) fluctuate more than before.
D) possibly increase, possibly decrease, or possibly remain constant.
E) increase. | D | Multiple Choice | Finance | University |
459076 | Ocala Company's stock is currently selling for $19.50 per share. At the end of the year, the company plans to pay a dividend equal to $2.34 per share. For the remainder of the company's life, dividends are expected to grow at a constant rate, and investors are expected to require a 16 percent return to invest in Ocala'... | $23.24 | Float | Finance | University |
1458916 | Flagstaff Industries, Inc. has determined that its EBIT for the coming year is approximately normally distributed with an expected value of $1.75 million and a standard deviation of $1.2 million. Given its current capital structure, Flagstaff has $250,000 in interest obligations due during the coming year. Determine th... | 10.56% | Percentage | Finance | University |
1466154 | Janetta Corp. has an EBIT of $1,065,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 16 percent, and the corporate tax rate is 35 percent. The company also has a perpetual bond issue outstanding with a market value of $2.1 million. What is the value of the company... | $5,061,562.50 | Float | Finance | University |
396498 | Calculate the future value of $6,400 invested for 6 years at an interest rate of 9% compounded semiannually. | $10,853.64 | Float | Finance | Senior High School |
1768806 | If the interest rate is 6.5% and cash flows are $500 at the end of year one and $1,000 at the end of year two, what is the present value of these cash flows? | 1351.14 | Float | Finance | University |
375748 | What is the present value of a security that will pay $20,000 in 20 years if securities of equal risk pay 7.5% annually? Round the answer to the nearest cent. | $4,708.26 | Float | Finance | Senior High School |
1514412 | The most recent financial statements for Summer Tyme, Inc., are shown here:
Income Statement
Balance Sheet
Sales
$4,300
Current assets
$4,800
Current liabilities
$980
Costs
2,700
Fixed assets
6,100
Long-term debt
3,590
Taxable ... | b | Multiple Choice | Finance | University |
635971 | World United stock currently plots on the security market line and has a beta of 1.04. Which one of the following will increase that stock's rate of return without affecting the risk level of the stock, all else constant
a) An increase in the risk-free rate
b) Decrease in the security's beta
c) Overpricing of the st... | a | Multiple Choice | Finance | University |
256488 | A local moving service recently purchased a van by securing a loan with semiannual payments of $3,500 per semiannual period for 8 years at 12% per year compounded semiannually.
What was the purchase price of this? (Round your answer to the nearest cent.) | $35,370.60 | Float | Finance | University |
834060 | Brett Dunlop is seeking part-time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training service company that will offer tutorial services over the internet. Brett expects demand for the service to grow rapidly in the first two years of operat... | $5,246 | Float | Finance | University |
852351 | A 5.65 percent coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) | 5.34% | Percentage | Finance | University |
715706 | You buy 100 shares of stock XYZ at $50/share on margin. Your broker makes you deposit 50% of the cost into your margin account and you borrow the remaining 50% from your broker at 0% interest. When you close out your position, you sell all 100 shares of XYZ for $45 dollars and repay the loan. What was your return on th... | -20% | Percentage | Finance | Senior High School |
786802 | Prepare an amortization schedule for a five-year loan of $63,000. The interest rate is 8 percent per year and the loan calls for equal annual payments. How much interest is paid in the third year? | 3253.07 | Float | Finance | University |
597510 | Cliff Corp. stock currently sells for $50 per share and just paid a dividend of $2.00.
If dividends are expected to grow at a constant rate of 4% annually, Treasury Bills have a return of 3% and the return on the S&P 500 (market return) is expected to be 15%, then what is the beta of Cliff Corp. stock? | 0.4167 | Float | Finance | University |
1688497 | What is the current price of a bond with a $1,000 face value, a 7-year remaining maturity, and a 9% coupon rate, if the YTM is 8%? The coupons are paid semiannually. | $1,054.69 | Float | Finance | University |
165540 | A firm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a cost of $290,000. The cost of operating this generator would be $150,000 per year, and the generator will last for five years. If the firm buys the generator, it does not need to purchase any ... | -$847,919 | Integer | Finance | University |
586442 | Amalgamated Inc. is 100% equity financed with a stock price of $100 per share. Suppose an investor wishes to invest in the stock of the equivalent firm but with a 20% debt capital structure. Suppose that the investor has $100,000 to invest. Further, suppose that the investor can borrow at 5%, the same rate of interest ... | A | Multiple Choice | Finance | University |
658322 | IBM has just paid a dividend of $4 per share (this dividend is already paid sometimes called Dividend 0). It is estimated that the company's dividend will grow at a rate of 35% in year 1 and 20% in year 2. The dividend is then expected to grow at a constant rate of 9% thereafter. The company's opportunity cost of capit... | 177.49 | Float | Finance | University |
1811921 | You want to accumulate $50,000 by saving $3,000 at the end of each of the next 10 years. At what interest rate must you invest to meet your goal? | 10.93% | Percentage | Finance | University |
428964 | Calculate the present worth of all costs for a newly acquired machine with an initial cost of $30,000, no trade-in value, a life of 15 years, and an annual operating cost of $13,000 for the first 4 years, increasing by 10% per year thereafter.
Use an interest rate of 10% per year.
The present worth of all costs for t... | $168,879.17 | Float | Finance | University |
982388 | Assume interest rate of 6%. A company receives cash flows of $104,875 at the end of years 4, 5, 6, 7, and 8, and cash flows of $240,352 at the end of year 10. Compute the future value of this cash flow stream. | 904,613.22 | Float | Finance | University |
599296 | Imprudential, Inc. has an unfunded pension liability of $582 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 percent, what is the present value of this liability? (Enter your answ... | $137.01 million | Float | Finance | University |
1676144 | Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.76 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,100,000 in annual ... | $297,429.14 | Float | Finance | University |
1939853 | Yield to call on a bond with a coupon rate of 8% paid semi-annually, 10 years to maturity, a par value of $1,000 and a selling price of $1,071, callable after 5 years at $1,010 is _____. | 6.49% | Percentage | Finance | University |
659228 | The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $130,000. The project will produce 800 cases of mineral water per year indefinitely. The current sales price is $143 per case, and the current cost per case is $110. The firm is taxed at a rate of 36%. B... | 111371.43 | Float | Finance | University |
1898134 | Using the time value of money tables, calculate the following:
The future value of $800 saved each year for 10 years at 8 percent. | $11,589.25 | Float | Finance | Senior High School |
1270696 | Find the amount of the payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period.
$85,000; money earns 4% compounded semiannually for {eq}4\ \frac{1}{2} {/eq} years | $8714 | Float | Finance | Senior High School |
1325816 | An annuity that begins more than 1 year in the future is referred to as a(n):
a. perpetuity
b. annuity due
c. uneven annuity
d. deferred annuity | d | Multiple Choice | Finance | University |
684753 | You invested $10400 and in 7 years it grew to $11400. What annual rate of return (APR) must you have earned? Assume quarterly compounding. | 1.28% | Percentage | Finance | Senior High School |
76207 | Your father invested a lump sum 33 years ago at 4.25 percent interest. Today, he gave you the proceeds of that investment which totaled $51,480.79. How much did your father originally invest?
a. $6, 500.00
b. $11, 999.45
c. $5, 929.47
d. $15, 500.00
e. $13, 035.72 | $13,035.72 | Float | Finance | Senior High School |
1855736 | You have $42,180.53 in a brokerage account and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 6% annually on the account. How many years will it take to reach your goal? | 16.76 | Float | Finance | University |
1213507 | In order to convert constant-value dollars into future dollars, it is necessary to:
(a) Multiply by (1 + i){eq}^n
{/eq}
(b) Divide by (1 + f){eq}^n
{/eq}
(c) Divide by (1 + i){eq}^n
{/eq}
(d) Multiply by (1 + f){eq}^n
{/eq}
(e) Multiply by (1 + i{eq}_f
{/eq}){eq}^n
{/eq} | d | Multiple Choice | Finance | University |
600366 | You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $3,500 per year. You will make 4 deposits, beginning immediately, in an account that pays 5.7% interest, compounded annually. Under these assumptions, how much will you have in your account (rounded to the nearest $1... | B | Multiple Choice | Finance | University |
2067725 | Suppose today is January 2, 2017, and investors expect the annual risk-free interest rates in 2021 and 2022 to be 4.5% and 2.3%, respectively. Currently, a four year treasury bond that matures on December 31, 2020 has an interest rate equal to 2.5%. What is the yield to maturity for treasury bonds that mature at the en... | 2.90% | Percentage | Finance | University |
2087479 | Corporation A issued 15-year bonds two years ago at a coupon rate of 8.5%. The bonds make semiannual payments. If these bonds currently sell for 106% of par value, what is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Explain. | 7.80% | Percentage | Finance | University |
1408852 | If the expected rate of return on the market portfolio is 13% and T-bills yield 5%, what must be the beta of a stock that investors expect to return 10%? | 0.63 | Float | Finance | University |
2088267 | An investment offers a total return of 10 percent over the coming year. Janice Yellen thinks the total real return on this investment will be only 6 percent. What does Janice believe the inflation rate will be over the next year? | 3.77% | Percentage | Finance | Senior High School |
390046 | Your insurance agent is trying to sell you an annuity that costs $230,000 today. By buying this annuity, your agent promises that you will receive payments of $1,225 a month for the next 30 years.
What is the rate of return on this investment?
A. 3.75%
B. 4.47%
C. 4.93%
D. 5.45%
E. 5.67%
Explain decision. | C | Multiple Choice | Finance | University |
2044681 | A project has an initial cost of $56,925, expected net cash inflows of $13,000 per year for 6 years, and a cost of capital of 12%. What is the project's MIRR? | 10.83% | Percentage | Finance | University |
1017594 | A mortgage instrument pays $1.5 million at the end of each of the next two years. An investor has an alternative investment with the same amount of risk that will pay interest at 8% compounded semiannually. What is the maximum that the investor should pay for the mortgage instrument? | $2,669,040.61 | Float | Finance | University |
2007762 | T-bill price Maturity (days)
T-Bill 1 $95.00 100
T-Bill 3 $500
Based on $100 par value, What price for T-Bill 3 will yield the same discount rate as for T-Bill 1? | $475 | Integer | Finance | University |
934974 | The Grist Mill just paid a dividend of $1.46 per share on its stock. The dividends are expected to grow at a constant rate of 3.5 percent per year, indefinitely. What will the price of this stock be in 5 years if investors require an annual return of 15 percent? | $15.61 | Float | Finance | University |
1310178 | If you invest $8,000 in an account that pays 5% interest compounded monthly, how much money will you have at the end of 9 years? | $12,534.77 | Float | Finance | Senior High School |
1999892 | Compute the IRR on the following cash flow stream:
An initial investment of $1,007,364 followed by a single cash flow of $1,607,300 in year 4. (Round intermediate calculations to 0 decimal places and final answer to 2 decimal places.) | 12.39% | Percentage | Finance | University |
585226 | Suppose you bought a forward, on January 1, that matures a year later. The forward price was $214 at that time, and the simple interest rate was 7% per year. Six months have passed, and the spot price is now $150. What is the value of your forward contract today? | -56.88 | Float | Finance | University |
978542 | You have a $1 million portfolio consisting of $250,000 investment in each of 4 different stocks. The portfolio has a beta of 2.0. You are considering selling $250,000 worth of one stock with beta of 1.6 and using the proceeds to purchase another stock with a beta of -1. What will the portfolio's net beta be after these... | 1.35 | Float | Finance | University |
2083768 | Your uncle promises to give you $550.00 per quarter for the next five years starting today? How much is his promise worth right now if the interest rate is 8% compounded quarterly? | $9173.15 | Float | Finance | University |
239403 | Poe Company is considering the purchase of new equipment costing $82,000. The projected net cash flows are $37,000 for the first two years and $32,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return... | $28,113.38 | Float | Finance | University |
164614 | If a firm buys under terms of 1/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places. | 14.75% | Percentage | Finance | University |
1269181 | Trust Bankers just paid an annual dividend of $1.8 per share. The expected dividend growth rate is 6.2 percent, the discount rate is 11 percent, and the dividends will last for 4 more years. What is the value of the stock? | $6.45 | Float | Finance | University |
1820189 | Dishwasher's Delights plows back 69.00% of its earnings to take on projects which earn the firm a rate of return of 15.00%. Dishwasher's stockholders require a return of 11.50% on their common stock. Earnings per share are expected to be $3.00 by next year.
What is the present value of growth opportunities for Dishwas... | $54.78 | Float | Finance | University |
5276 | A corporate bond matures in 14 years. The bond has an 8 percent semiannual coupon and a par value of $1,000. The bond is callable in five years at a call price of $1,050. The price of the bond today is $1,075. What is the bond's yield to call? | 7.06% | Percentage | Finance | University |
1654656 | How long will it take money to triple at an APR of 7.6% compounded annually? | 15 years | Integer | Finance | Senior High School |
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